Our DailyMarket Reports

Closing Gold & Silver Market Report, 8/16/2012

8/16/2012 4:02:21 PM By: Brandi Brundidge

CENTRAL BANKS MAY REACH RECORD YEAR AS NET BUYERS OF PRECIOUS METALS

The World Gold Council (WGC) reported today that Gold demand fell to its lowest point in over two years during the second quarter. The fluctuation with Gold demand is due to key consumers such as India and China acquiring less, offsetting a notable quarter for central bank acquisitions. Marcus Grubb at WGC commented on how central banks may set a record with their increased Precious Metals holdings this year compared to last. Grubb said, “If you look to the half year, central banks have bought 254 tons against 200 tons for the half year last year. At this rate, we'll be looking at a record central bank year, higher than last year, which was a record since 1964.”

Economists in a recent Reuters poll said they see a worsening outlook with no anticipation for Europe’s debt crisis to be contained or for a significant economic recovery. The measures being taken to save the euro are not reassuring to economists that an improved economy is on the horizon. “The biggest drag on global growth in the second half of 2012 will be from the eurozone,” said Andrew Kenningham, senior global economist at consultancy Capital Economics, in a note. “Even if the eurozone manages to survive in its current form, the ongoing austerity and high credit spreads suggest the growth outlook is bleak.”

At 5:01 p.m. (EDT), the APMEX Precious Metals spot prices were:

Gold, $1,615.90, Up $10.80.

Silver, $28.26, Up $0.34.

Platinum, $1,443.10, Up $45.90.

Palladium, $585.40, Up $5.80.

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Disclaimer:
APMEX’s ‘Market Reports’ provide our readers with a review of spot price activity and some of the factors that may be affecting the market for precious metals, three times during the trading day. While the information is obtained from sources we believe to be reliable, we do not guarantee its accuracy or its completeness and we encourage you to conduct your own investigation prior to making any decision based on the information. The "News and Commentaries" are not intended as a comprehensive discussion and there may be other factors that may be affecting the financial marketplace. These "News and Commentaries" are provided for informational purposes only and do not constitute a recommendation by APMEX to hold, to purchase or to sell any precious metal product. All orders, all purchases and all sales, if any, are subject to the terms of the User Agreement and other applicable policies.